What is Term Life Insurance?
Term life insurance is the easiest to understand. Basically, the policy you purchase provides coverage for a specific period of time, or "term" of years. If the insured person dies within the "term" of the policy and the policy is still in force (active), then the death benefit is paid out to the beneficiary.
This type of insurance typically allows clients to initially purchase more insurance coverage for less money (premium) than other kinds of life insurance. Primerica's "Buy Term and Invest the Difference" philosophy encourages clients to take this "difference" in premium and invest it for the future.
What's the Big Deal About Life Insurance?
You may be wondering, "Do I even need life insurance?" If anyone is depending on your income or if you have obligations (debt, mortgage, etc.) that would fall to someone else to handle if you were to die, then the answer is, "Yes."
Life insurance acts as a substitute for income. Have you ever calculated how much you'll earn in your lifetime? Typically, over the course of your working years, the answer is usually "a fortune." The potential risk of losing that earning power – earnings you'll need to fund your family's biggest goals like buying a home, paying for your kids' education, reducing debt, saving for retirement, etc. – especially at the early or mid-point of those years, is what makes life insurance a necessity for most people.
What Kind of Life Insurance Should You Buy?
You need term life insurance. A common misconception about life insurance is that it is a permanent need for each family. Many financial experts see life insurance as a tool to "buy time" until you accumulate savings – and not as a permanent fixture of your financial life. Term life insurance is generally much more affordable in the initial years to provide the right amount of coverage you really need for your family.
"Term insurance is pure protection, like fire insurance or auto insurance, its sole function is to support your family if you die. You can buy large amounts of coverage for modest amounts of money – and big policies are what your spouse and children need." Making the Most of Your Money Now, Jane Bryant Quinn
"For most people, term insurance makes the most sense and, dollar for dollar, gives you the most protection for your money." Kiplinger.com, "How to Shop for Life Insurance," January 30, 2020
Isn't Group Insurance Through Work Enough?
Many employers carry a group life insurance policy for their employees. If that's the case for you, is it really necessary to own an individual policy?
Group insurance can play a role in protecting your family, financially, but it's only a small part of that protection. Group insurance typically only covers one to two years' salary, is owned by your employer and usually only covers you while you remain employed. If you leave that job or get laid off, your employer-sponsored coverage ends.
With a Primerica term insurance policy, you're covered until age 95 and your policy remains in effect as long as you keep your premiums current.
How Much Life Insurance Do You Need?
If your family is like most, the answer to that question is probably more than you currently have. Ten times your annual salary is a good rule of thumb. Your Primerica representative can help you determine how much life insurance you need, and many other questions you might have about your household finances, with a Financial Needs Analysis (FNA)
Procrastination Is Not Your Friend
People sometimes delay purchasing life insurance even though it exists to protect their loved ones' well-being – and they do so for several reasons. Death isn't something we like to think about. It's uncomfortable to consider what could happen to those who most care about you. Some people have the mistaken belief that there's no hurry. It's always something they can deal with tomorrow. But, none of us knows what tomorrow will bring.
The fact is that the younger you are, and the better your physical shape, the less expensive life insurance will be. And, remember, this should not be an "Internet decision," but a face-to-face (whether virtual or in-person) decision with an insurance professional to fully assess your insurance needs, answer your questions, and help you make the decisions you need to make to protect your family. Buying life insurance has never been easier – and the time to buy is now.
Nobody Understands What Families Need from Life Insurance Like Primerica
We do what's right for families every time. Over 5.5 million lives are insured through our life companies – Primerica Life Insurance Company, Primerica Life Insurance Company of Canada, and National Benefit Life Insurance Company. We have $858 billion of term life insurance in force and pay out an average of $4.6 million in benefit claims every day. Primerica's life companies are among the few that offer 35-year term policies.
Numbers reflect the combined totals or daily average, as indicated above, as of, or for the year ended, December 31, 2020, for the following affiliated companies: Life Insurance: National Benefit Life Insurance Company (Home Office: Long Island City, NY) in New York; Primerica Life Insurance Company (Executive Offices: Duluth, GA) in all other U.S. jurisdictions; Primerica Life Insurance Company of Canada (Head Office: Mississauga, ON) in Canada. Investments: In the United States, securities are offered by PFS Investments Inc. (PFSI), 1 Primerica Parkway, Duluth, Georgia 30099-0001; In Canada, mutual funds are offered by PFSL Investments Canada Ltd., mutual fund dealer, and segregated funds are offered by Primerica Life Insurance Company of Canada, Head Office: Mississauga, ON. Each company is responsible for its own financial obligations.
|Primerica's Life Companies*|
|Complimentary Financial Needs Analysis (FNA)||YES|
|Personalized Solutions & Financial Education||YES|
|Convenient Service & House Calls||YES|
|Guaranteed Insurability to Age 951||YES|
|Guaranteed Rates for the Entire Initial Term2||YES|
|Affordable & Customizable||YES|
|Automatic Increase Request||YES|
|Primary Waiver of Premium||YES|
|Spouse Waiver of Premium||YES|
|Terms Up to 35 Years||YES|
|91% of Claims Paid Within 14 Days||YES|
|Up to 70% of Face Amount Terminal Illness Benefit with Waiver of Premium3||YES|
|Increasing Benefit Rider4||YES|
|Flexible Use of Riders to Increase Coverage||YES|
|One Policy per Family||YES|
|One Child Rider Covers All Eligible Children in Family||YES|
|Achieved Contestability Honored5||YES|
|No War or Terror Clauses||YES|
|Never Raised Premium Above Scheduled Rates6||YES|
|Industry Leading Renewal Options||YES|
|Affordable Renewal Rates||YES|
* In New York, term life insurance products are underwritten by National Benefit Life Insurance Company, Home Office: Long Island City, New York. In the United States (except in New York), term life insurance products are underwritten by Primerica Life Insurance Company, Executive Offices: Duluth, Georgia. In Canada: Term life insurance products and segregated fund products are offered by Primerica Life Insurance Company of Canada, Head Office: Mississauga, Ontario. Not all products are available in all states or provinces.
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1. Applies only once applicable underwriting requirements are met for the approval and issuing of initial policy and subject to the provisions of the policy. 2. Premiums guaranteed not to increase during initial term, except in New York. 3 With Waiver of Premium Rider, the lesser of $400,000 or 70%. Without Waiver of Premium Rider, the lesser of $250,000 or 40%. Charges apply to activate Terminal Illness Benefit. Costs vary by state. This is a life insurance benefit that gives you the option to accelerate some or all of the death benefit in the event that you meet the criteria for a qualifying event described in the policy. This policy or certificate does not provide long-term care insurance subject to California long-term care insurance law. This policy or certificate is not a California Partnership for Long-Term Care program policy. This policy is not a Medicare supplement (policy or certificate). 4. Must be under age 56 and issued non-rated coverage. 5. Not available in New York. 6. On Primerica Life and NBL products. Scheduled rates not applicable in Canada as premiums have always been guaranteed.
TermNow term life insurance policy form NBF17DA1 in New York state and ICC17DJ0 or PLF17DJ0 in all other U.S. jurisdictions. In Canada, TermNow life insurance is policy form ZLF15DA0G.
In New York State, CustomAdvantage Term Life Policy Form NBF17CA1, NBF17CB1 or NBF17CC1, in all other US jurisdictions, ICC17CJ0, ICC17CK0 or ICC17CL0. In Canada, ZLF15CA0G, ZLF15CC0G or ZLF15CB0G.